Problems with the Traditional Banking System

The existing banking system and the global financial infrastructure are facing severe challenges in meeting the growing needs of users. It is a question that has been raised over and over that the current banking system can only be used by a minority. Accordingly, cryptocurrency and blockchain technology, which are not only convenient for users but also easy and convenient for many users, are rapidly emerging as a global financial infrastructure.

We are going to look at the problems that traditional banks have.

1. Ambiguity

   Our existing banking system is quite ambiguous, complex and it is also very over-Priced. Transferring money from one country to another has huge processing methods which make it costlier and also time-consuming.

2. Centralized Banking

   In the growing economical world, users’ perspective towards the centralized banking system is slowly changing which calls for the need for a decentralized banking process. Which is why now businesses are slowly opting for banks with a decentralized process. The centralized method is very inflexible for the customers because the entire control lies with the senior management and is not customer-friendly. The most common cause of approaching banks for a commoner is to borrow money, for which the decentralized banking process will be a faster and better option.

3. Crypto-Friendliness

   Money is taking different forms today, and one among them is cryptocurrencies. Gradually, cryptocurrencies are spreading their wings beyond their crypto community and it is getting into the lives of a commoner, but the problem is that we do not have crypto-friendly banks that can provide a single banking account for handling both the traditional money and the cryptocurrency. There is a lack of infrastructure to support financial transactions between crypto and fiat currencies.

4. Multi-Currency Handling

   There is a lack of knowledge to handle digital assets. There is also not enough security for our digital assets, which makes people hesitant to opt for them. Also, we do not have a structured and rationalized process for converting our digital assets and cryptocurrencies.